Ivey Enacts PSC Bill: Expands Membership, Omits Rate Hearings
Governor Kay Ivey signed a law changing how Alabama regulates utilities. The measure expands the Public Service Commission and alters procedures for rate oversight.
What the law does
The PSC will grow from three members to seven. Commissioners will be elected by congressional district instead of statewide.
The expansion will be phased in. The governor will make four initial appointments.
New offices and duties
The law creates a secretary of energy post in the governor’s cabinet. That official will have authority over PSC direction.
Ivey said the secretary will be chosen by the next governor. The position also may prompt more attention to energy policy.
Rate rules and hearings
The bill places a freeze on electric rates through 2029. Utilities cannot raise rates during that moratorium.
Ivey enacted a PSC bill that expands membership and omits formal rate hearings as a mandatory requirement. Formal rate cases are not required under the new law.
However, rate hearings remain possible after 2029. They can be ordered by the secretary of energy or by five of seven commissioners.
Additional requirements
The law mandates an annual public hearing with regulated utilities. Alabama Power was named among the companies covered.
The Senate removed a proposed cap on utilities’ return on equity. That change removes one limit from the rate-setting factors.
Legislative action and votes
The Legislature sent the bill to the governor after final passage on Wednesday. The Senate approved the measure 32-0.
The House voted 72-26 to accept the Senate’s version. Sponsor Rep. Mack Butler opposed final passage after the changes.
Supporters and critics
Senator Clyde Chambliss said the expansion and hearings will increase scrutiny of rates. He sponsored earlier changes in the Senate.
Energy Alabama criticized the new law. Executive Director Daniel Tait said the state deserved stronger reforms for ratepayers.
Context on Alabama power costs
Alabama’s electricity costs rose relative to the national average, lawmakers said. In 2000 the state was at 82% of the national average.
By 2024, Chambliss said Alabama reached 92% of the national average. The state fell from the 13th lowest power-rate rank in 2000. By 2024, it ranked 28th lowest.
Next steps
The PSC expansion will be implemented over time. Incoming commissioners and the new secretary will take on roles under the law.
Advocates say the changes could draw more public focus to rate-setting. Critics say the law missed chances to force immediate rate-case reviews.
Filmogaz.com will continue to monitor implementation and reactions as new appointees and rules take effect.
